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Abbott tells Holden to clear the air

Dec 06, 2013
Holden's Mike Devereux with Federal Industry Minister Ian McFarlane and Premier Jay Weatherill

Holden's Mike Devereux with Federal Industry Minister Ian McFarlane and Premier Jay Weatherill

Prime Minister Tony Abbott has called on Holden to make its intentions clear but says there will be no extra taxpayer support for the company.

There are reports that senior Coalition ministers believe the car maker is planning to close its Australian operations from 2016.

“I want Holden to stay, I want the motor industry to survive and flourish in this country,” Abbott told Fairfax radio on Friday.

“I do wish Holden would clarify their intentions because at the moment they’ve got everyone on tenterhooks.”

Abbott says the company appears to be in “two minds” about its future.

“I think they’re weighing their options. I think they owe it to the workforce, they owe it to the suppliers, they owe it to the people of Australia to say what they’re doing.

“Are they staying or are they going?”

Abbott said the Coalition took to the election a policy that includes substantial support for the motor industry.

“We stand ready to make that support available,” he said.

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“But there’s not going to be any extra money over and above the generous support the taxpayers have been giving the motor industry for a long time.”

South Australia’s Premier Jay Weatherill says he has spoken to the Federal Industry Minister last night who said he has spoken to Holden and the company has denied the reports.

Weatherill fired a political shot, claiming the reports exposed divisions in the Liberal Party.

“What is happening now is that Federal Government Ministers are briefing against their own colleagues, exposing the deep divisions in the Liberal Party over the auto industry’s future,” he said.

“It is now time for the Prime Minister to intervene because this cannot be allowed to continue.

“This ongoing speculation is incredibly damaging to Holden and to the workers.”

Abbott says the motor industry has long looked for money from taxpayers.

He says his government is trying to make it easier for all businesses to compete and flourish by bringing down taxes, reducing regulation and restoring confidence.

“That’s the best thing we can do for the businesses of Australia, not chase them down the road waving a blank cheque at them,” he said.

Abbott said there was currently about half a billion a year in support available to the motor industry.

“We think there’s more than enough money on the table. It’s available to the motor industry. But there is no more.”

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